The main reason was greater borrowing due to historically low interest rates, according to the agency.

The report shows Canada’s household credit market debt, which includes mortgage loans and consumer credit, jumped by almost two percent to 167.8 percent compared with the first quarter of the year. In total, Canadians now owe about $1.68 for every dollar of disposable income.

The average benchmark composite price of homes is now $574,500. Since real estate represented half of all GDP growth in some of Canada’s major provinces, a 47 percent drop in real property prices could wipe out almost all of the country’s consumer wealth.

The rapidly rising real estate market will end poorly for consumers, lenders, and Canada’s economy as a whole, said the Bank of Montreal.

It was echoed by the Bank of Canada which has repeatedly warned high household debt could threaten the country’s financial stability.

“Self-reinforcing expectations” are fueling both a price run-up and increasingly risky borrowing by some buyers, said Bank of Canada Governor Stephen Poloz. He said over 720,000 households could struggle to make debt payments during a downturn.